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If the USInterest Rate Falls Relative to the British Interest Rate

Question 1

Multiple Choice

If the U.S.interest rate falls relative to the British interest rate,


A) the U.S.demand for pounds will not change
B) the U.S.demand for pounds will decrease
C) the U.S.demand for pounds will increase
D) there will be a rightward movement along the U.S.demand curve for pounds
E) there will be a leftward movement along the U.S.demand curve for pounds

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